The Adjusted Trial Balance for Katy Corporation at the End

The adjusted trial balance for Katy Corporation at the end of 2017 contained the following accounts: $\begin{array}{llr} \text {Bonds payable, \( 10 \% \). } &\$700,000\\ \text { Interest payable } &20,000\\ \text {Discount on bonds payable } &40,000\\ \text { Lease liability } &50,000\\ \text { Mortgage notes payable, 9\%, due 2020} &90,000\\ \text {Accounts pavable } &120,000\\\end{array}$
Instructions
(a) Prepare the long-term liabilities section of the balance sheet.
(b) Indicate the proper balance sheet classification for the accounts listed above that do not belong in the long-term liabilities section.